Honorable Minister Mr. Abul Maal Abdul Muhit, Ministry of Finance, Government of People’s Republic of Bangladesh presented budget for fiscal year 2015-16 on 04 June 2015. The proposed budget for the fiscal year 2015-16 is bigger by Tk. 550 billion over that of the outgoing fiscal.
INCOME TAX SLAB FOR INDIVIDUAL TAXPAYERS & CORPORATE RATES APPLICABLE FOR 2015-16.
INDIVIDUAL TAX RATES AND INCOME SLABS:
| INCOME | RATE |
| 1st Tk.. 250,000 | Nil |
| Next Tk. 400,000 | 10% |
| Next Tk. 500,000 | 15% |
| Next Tk. 6,00,000 | 20% |
| Next Tk. 30,00,000 | 25% |
| Amount over Tk. 47,50,000 | 30% |
| Any income of an individual being a non-resident foreigner | 30% |
| Minimum Income tax payable by individual taxpayer: Dhaka & Chittagong City Corporation : Tk. 5,000 Other City Corporation : Tk. 4,000 Other areas : Tk. 3,000 |
INDIVIDUAL TAX FREE INCOME THRESHOLD:
| Type of Taxpayers | Tax free Income Limit | |
| Last Year | This Year | |
| Individual | 220,000 | 250,000 |
| Women and 65 above aged taxpayers | 275,000 | 300,000 |
| Retarded taxpayers | 350,000 | 375,000 |
| Liberation war wounded gazeted freedom fighters | 400,000 | 425,000 |
SURCHARGE FOR INDIVIDUAL TAXPAYER BASED ON NET WEALTH:
More than 2.25 crore but not more than 10 crore – 10%
More than 10 crore but not more than 20 crore – 15%
More than 20 crore but not more than 30 crore – 20%
More than 30 crore – 25%
Minimum surcharge payable is Tk. 3,000.-
CORPORATE TAX RATE- 1
| COMPANY | 2014-15 | 2015-16 |
| Publicly Traded Company | 27.50% | 25% |
| Publicly traded Co. declaring at least 30% dividend | 24.75% | 25% |
| Publicly traded Co. declaring less than 10% dividend | 35% | 25% |
| Non-publicly traded company | 35% | 35% |
| Bank, Insurance & Financial Institute: Listed & 4th Generation Banks and FIs Non-listed | 42.50% 42.50% | 40.00% 42.50% |
CORPORATE TAX RATE- 2
| Company | Last Year | This Year |
| Merchant Bank | 37.50% | 37.50% |
| Cigarette: Non Publicly Traded Publicly Traded | 45% 40% | 45% 45% |
| Cellular Phone: Non Publicly Traded Publicly Traded | 45% 40% | 45% 40% |
| Minimum Tax payable on gross turnover | 0.30% | 0.30% (0.10% in first three years) |
UNIFORM INCOME YEAR: 1) Calendar year shall be the income year for bank, insurance and financial institutions.
2) Financial year i.e July-June shall be income year for all other taxpayers.
3) This new provision shall be applicable from 1st July 2016.
EMPLOYEE TAX: 1) Basic salary, bonus and festival allowances are to be taxed similarly for all Government and private sector employees; [SRO No- 198/2015, date 30 June 2015]
2) Tax free cash medical allowance – 10% of basic salary or Taka 1 lakh 20 thousand, whichever is lower.
3) Cash house rent allowance, 50% of basic or Tk. 25,000 per month (whichever is lower) shall be tax exempted.
4) 5% national income or Taka 60,000 which ever is higher for use of vehicle provided by employer
5) Gratuity is to be tax free up to 2 crore and Taka 50 lakh.
6) Worker’s Participation Fund payments received by workers as defined in Section 2(65) of the Labour act 2006 be exempted from tax; WPPF receipts by officers shall be fully taxable.
For more information see full budget speech 2015-16 :
BUDGET 2015-16 In ENGLISH
BUDGET 2015-16 IN BANGLA
THANK YOU FOR CONNECTING WITH US
I am more curious about Income Tax, Source Tax and Source VAT etc. Please any help regarding tax. Thanks. Emran Hossain. Cell No. +880 1854 56 08 60.
Withholding Tax, TDS Rate and many more are coming soon. Please keep in touch with Dormantlife.com.
Needed more details.
Municipality tax rates?
According to the new schedule the taxes on land and buildings in municipality areas fixed at 7% of the real prices of the properties.
Is there any possibility to change the company tax rate?
May be No. Keep in touch with Dormant Life. “Income Tax Tax Slab & Rate 2016-17” is coming soon.
What is the income tax on a mink blanket manufacturing unit for a foreign company, as well as for a chicken breeding unit?
Employer provided fund is taxable or not?
Employer provided fund is taxable when you receive fund.
If anyone belong a e-TIN Number but his income is not more than 2 Lakh Taka, then is there any bindings to pay any Income Tax?
If your income not more than 2 lac why you open E-TIN, however when you open e-TIN you must be submit tax return and minimum tax Tk. 5,000/-, Please take advice any Income Tax Lawyer.
Do people retired from job have to pay income tax? Please tell about both private and government job retired persons.
If the retired persons have any source of income he will pay tax if not he will submit return “0” tax 3 years and then he will not pay tax.